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NEW YORK — U.S. large-cap technology stocks recorded their steepest one-day selloff since April 2025 as investors reassessed the payoff from heavy artificial intelligence spending and rapidly exited high-valuation growth names. On Friday, July 24, 2026, the group of mega-cap companies known as the Magnificent 7 collectively lost about $797 billion in market value in a single trading session, helping to pull major U.S. equity benchmarks sharply lower. The S&P 500 fell 1.2 percent to close at 7,509.2 points, while the technology-heavy Nasdaq 100 declined 1.9 percent. Trading floors across Wall Street reported heavy volumes as sell orders accelerated through the morning and afternoon, breaking key technical support levels and underscoring the breadth of the retreat across primary New York exchanges. NEW YORK — The catalyst for the tech-focused rout was heightened scrutiny of corporate spending commitments on artificial intelligence infrastructure following a fresh round of earnings and guidance. Alphabet Inc. reported quarterly results that showed sharply higher capital expenditure projections and its first-ever instance of negative free cash flow, even though net income exceeded consensus analyst expectations. The confirmation of accelerating infrastructure outlays prompted an immediate negative reaction, sending Alphabet Class A shares down 7.13 percent and weighing heavily on the broader communication services sector, which dropped 4.8 percent. The losses reinforced mounting investor skepticism over whether escalating AI investments will generate adequate returns in the near term and deepened the overall selloff in large-cap technology stocks.

Prepared by Christopher Adams and reviewed by editorial team.